Posted in Finance, Accounting and Economics Terms, Total Reads: 258
Definition: Near Term – NT
The term Near Term is used to refer to a short period of time in the future. It is used for describing the events that are expected to occur soon. In finance circles, near term is usually used for explaining the timeframe during which an even or change is expected to occur. Near term can mean different timeframes depending on the different industry, or the security being traded or the business on the whole.
In the domain of financial markets, the analysts use near term to events that include profits, issuance of bonds, expectations regarding the next quarter, etc.
Let us understand this with the help of examples. A company named XYZ is planning to cut short on its export on gasoline in the near term due to a loss on its refining capacity which resulted due to an emergency shutdown. Also an analyst’s review may say that a particular shows a bright outlook in the near term. This indicates its predictions for the next few months.